Production Management

Production management
• Production management means the
application of management principles to the
production function in a factory.
• It involves the following
• Planning
• Staffing
• Directing and controlling
 Other definitions
• Production management deals with decision
making related to production process so that the
resulting goods or services are produced
according to the specifications in amount and by
the schedules demanded and at the minimum
cost.—E.S Bulla
• Production management is concerned with those
processes which convert the inputs into outputs.
• Inputs:- raw material, men, methods etc
• Output :- goods and services
 Objective of production management
• To convert raw material into finished goods with
ensuring quantity, quality, cost and delivery
• Right quantity, right quality, right time and right
price
• Effectiveness objective
• Efficiency objective
• Quality objective
• Lead time objective
• Capacity utilisation objective
• Cost objective
Component of production function
• Production management is essentially planning,
organising and controlling of production function.
• Planning :- product selection and design
• Process selection and planning
• Facility location
• Facility layout and materials
• Capacity planning
• Forecasting
• Production planning
 Organising
• Work study and job design
• Controlling
• Production control
• Inventory control
• Quality control
• Maintenance and replacement
• Cost reduction and cost control
 Qualities of production manager

• Imagination
• Intelligence
• Sympathy
• Self control
• Communication skills
• Enthusiasm and perseverance
• Resourcefulness
• Flexibility
 Manufacturing systems
• Intermittent production
• Continuous or flow production

• Intermittent production:- job production and

batch production
• Continuous production:- Mass Production,
process production and assembly production
• Process production:- analytical and synthetic
 Product development
• Introduction of New product
• Improvement in existing product
Methods of product development
• Imitation
• Improvement or adaptation
• Innovation or invention
 Stages of product development
• Idea generation
• Idea screening
• Concept testing
• Business analysis
• Product development
• Test marketing
• Commercialization
• Review of marketing performance/follow up